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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 29
Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect
Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information reported in their 2010, 2009, and 2008 annual reports (amounts in millions).
Required:
1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2010 and 2009. (Round to one decimal place.)
2. Which of the companies is quicker to convert its receivables into cash
Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information reported in their 2010, 2009, and 2008 annual reports (amounts in millions).
Required:
1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2010 and 2009. (Round to one decimal place.)
2. Which of the companies is quicker to convert its receivables into cash
Explanation
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1.
Receivables turnover ratio is the rat...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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